How to donate sensibly
Consumers looking for competitive rates, but also hoping to give something back have more than 100 affinity options in the credit card and savings market, Moneyfacts has revealed.
Those considering the best way to donate to charity would do well to consider the wide range of affinity credit cards and savings accounts available, according to the financial comparison site. While the 39 affinity savings accounts on offer do not tend to pay the market leading rates of interest, they are by no means the lowest on offer, Rachel Thrusell, head of Savings at Moneyfacts has said.
“Some savers are more than happy to sacrifice a little of their interest rate in the knowledge that their chosen charity will benefit as a result,” she added. “The average rate (based on a £5K deposit) is 3.87%, compared to an average of 4.157% on no notice savings accounts.”
Alternatively, Thrusell suggested choosing the market leading account and then arranging to donate or share the interest income with a charity independently.
There are also more than 75 charity card options available for credit card holders. Most donate a specified sum upon first use of the card, followed by a percentage of each subsequent spend.
Samantha Owens, head of personal finance at Moneyfacts, said, “The majority of charity donation cards do charge a higher than average interest rate. So for those consumers without a competitive deal and holding a balance on their card, this can be a costly way of giving.
“In this case it may be beneficial to make use of a balance transfer deal or at the very least a low rate purchase card and use the cost savings to give independently to charity. Alternatively a standard cash back card, which typically offers higher returns, could be another simple method to raise funds.”